THE Supreme Court has given the Sandiganbayan the go-signal to prosecute former Isabela Gov. Grace Padaca and two others for graft and malversation of public funds for their alleged involvement in the anomalous award of a P25-million contract to a private firm for the implementation of the province’s rice program.
In a 12-page decision penned by Associate Justice Andres Reyes Jr., the Court’s Second Division junked the petitions filed by Padaca, municipal councilor Servando Soriano and Dionisio Pine, manager of the Economic Development for Western Isabela and Northern Luzon Foundation Inc. (EDWINLFI) seeking the reversal of the resolutions issued by the Office of the Ombudsman in January 2011 and September 2012, which found probable cause to indict them and deny their motion to recall the arrest warrants issued against them, respectively.
Based on the investigation conducted by the Ombudsman, Padaca engaged the services of EDWINLFI to manage Isabela’s provincial rice program without due regard to the rules on government procurement.
The Ombudsman also noted that EDWINLFI’s officers include Soriano and provincial government legal officer Johnas Lamonera, which raises a suspicion as to the regularity of the transaction.
Thus, the Ombudsman ruled that there is a probable cause to believe that Padaca gave unwarranted preference and benefits to EDWINLFI, which is penalized under Section 3 (e) of Republic Act 3019, or the Anti-Graft and Corrupt Practices Act.
The Ombudsman also found probable cause to charge the petitioners for malversation of public funds based on Section 340 of the Local Government Code.
The said provision states: “Any officer of the local government unit whose duty permits or requires the possession or custody of local government funds shall be accountable and responsible for the safekeeping thereof in conformity with the provisions of this Title. Other local officers who, though not accountable by the nature of their duties, may likewise be similarly held accountable and responsible for local government funds through their participation in the use or application thereof.”
By giving preference to EDWINLFI in the release of P25 million without stipulations in the memorandum of agreement, the cost estimates and terms of reference with respect to the scope of services for the implementation of the provincial rice program, the Ombudsman held that it was as good as permitting—through abandonment of negligence—the firm to take the government funds.
On the other hand, the charge against Soriano and Pine was due to their personal and deliberate participation in the transactions.
“With the foregoing, the Court concurs with the Sandiganbayan that no grave abuse of discretion amounting to lack or excess in jurisdiction can be attributed to the Ombdusman, as the latter’s finding of probable cause rest on substantial basis,” the Court ruled.
Likewise, the Court said there was no grave abuse of discretion on the part of the Sandiganbayan in denying Soriano and Pine’s motion to recall the arrest warrants issued against them.
“The Sandiganbayan aptly limited its determination of probable cause to resolve whether arrest warrants should be issued against petitioners. There is no allegation, much less proof, how this judicial determination was exercised in a capricious, whimsical or arbitrary manner,” the Court explained.
“In sum, there is no cogent reason to disturb the Ombudsman’s finding of probable cause and the Sandiganbayan’s denial of Soriano and Pine’s omnibus motion. The Court cannot and will not nullify the Ombudsman’s factual findings on the sole ground that the complainant does not agree with such findings,” it added.
Concurring with the ruling were Acting Chief Justice Antonio T. Carpio and Associate Justice Diosdado M. Peralta and Estela Perlas-Bernabe.
The charges against Padaca, an ally of former President Benigno S. Aquino III, and the other Isabela officials were filed on the basis of a complaint made by former Isabela Rep. Santiago Respicio.